Procurement Market Intelligence Report
Physical Therapy Services
Sourcing Guide & Market Intelligence
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Physical Therapy Services Global Overview
Definition
Summary
Physical therapy services address a range of issues, including back and neck strains, sprains, fractures, neurological disorders, or other impairments related to motor function and body mechanics. Treatment may be administered through exercise, stretching techniques, heat application, orthotics, or electrical stimulation. Physical therapists are healthcare practitioners who restore, improve, and maintain the health and physical movement of patients with chronic or acute injuries and conditions. Buyers include hospitals and other care facilities.
This Report Includes:
- Physical Therapy Services
- Physical Rehabilitation Services
- Therapeutic Exercise Equipment
Not in this Report:
- Occupational Therapy Services
- Speech Therapy Services
Global Physical Therapy Services Procurement Trends
Discover the top international trends affecting procurement in the global Physical Therapy Services market.
Warning Trends
Public sector demand slumps as the government enters shutdown
- On October 1, the US federal government entered a shutdown after negotiations for a new appropriations bill failed.
- During a government shutdown, essential federal government operations, such as law enforcement, air-traffic control, and social security, persist, while nonessential operations are paused and workers involved in these operations are furloughed. Thus, the current shutdown is expected to result in 750,000 federal workers being furloughed, representing a $400 million reduction in daily expenditure by the federal government.
- This significant reduction in federal spending and operations will affect the entire US economy, weakening aggregate demand and slowing economic growth. For example, the 35-day government shutdown in Q1, 2019, reduced aggregate demand in both the public and private sectors, resulting in a 0.2% reduction in GDP growth that quarter.
- The effects of the shutdown are likely to be most acute in markets where the public sector is a major buyer segment, weakening demand and increasing average vendor risk by destabilizing important revenue streams.
- As negotiations for a new appropriations bill to reopen the government remain ongoing, ProcurementIQ will continue to monitor the situation and update this story with the latest information.
Global Physical Therapy Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 166,020 |
| #2 Europe | 135,250 |
| #3 United States | 118,000 |
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2
Geography Drilldown - US
Average Cost of Physical Therapy Services
United States
2026 Market Pricing$50.00 to $XXX.XX
per sessionAverage Price
Prices in the Physical Therapy Services market range from $50.00 to $XXX.XX, depending on Type of Treatment, Length of Treatment, Location and Therapist Experience. For example, lower prices are associated with Standard physical therapy with physical exercises ($75.00 to $150 per session), whereas higher prices are associated with Customized physical therapy with electrical stimulation exercises ($100 to $200 per session).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Physical Therapy Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Physical Therapy Services market, prices in the US have grown 1.0% from 2022 to 2025. Subscribers can access price trend forecasts, price driver projections and forward-looking cost structure data. Learn more
United States (2022-2025)
United States (2025-2028)
Compound Annual Growth Rate
Wondering where prices are heading?
Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Physical Therapy Services
Total cost of ownership is High in the Physical Therapy Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Cancellations may raise the total cost of ownership unexpectedly.
Negotiated Before
Pre-evaluation
Customization
Billed During
Additional Fees
Unforeseen
Cancellations
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -0.6 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Recent Price Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Medium, which has a negative impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Medical Supplies Wholesalers
- Pharmaceutical Wholesalers
- Diagnostic & Medical Laboratories
- Healthcare Staff Recruitment Agencies
2nd
Tier Suppliers
- Instrument & Supply Manufacturers
- Brand Name Pharmaceutical Manufacturers
- Laboratory Supply Wholesalers
Biggest Physical Therapy Services Suppliers in the US by Revenue
The largest Physical Therapy Services vendors by revenue in the US are Kindred Healthcare, Inc., Lifepoint Health, Inc. and Tenet Healthcare Corporation. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Select Medical Holdings Corp | National | MECHANICSBURG, PA | >10,000 | 10-15 | ||||
| US Physical Therapy Inc. | International | HOUSTON, TX | 1,001-10,000 | 15-20 | ||||
| Hca Healthcare, Inc. | International | NASHVILLE | >10,000 | < 5 | ||||
| Tenet Healthcare Corporation | National | DALLAS, TX | >10,000 | < 5 | ||||
| Encompass Health Corporation | National | BIRMINGHAM | >10,000 | < 5 | ||||
| Kindred Healthcare, Inc. | International | Louisville, KY | >10,000 | < 5 | ||||
| Lifepoint Health, Inc. | National | Brentwood, TN | >10,000 | < 5 | ||||
| Ensign Group, Inc. | National | SAN JUAN CAPISTRANO, CA | >10,000 | < 5 | ||||
| Adventist Healthcare, Inc. | US | < 5 | ||||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Physical Therapy Services market is 10.3% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Wages. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Average vendor risk in this market is moderate overall, with large suppliers typically being more financially stable due to their spread in various markets and ability to achieve economies of scale. Smaller operators are at greater risk of bankruptcy due to their reliance on a particular market and rising market competition, which make it difficult to remain profitable.
The level of market share concentration has been moderate and has not been rising significantly in part due to the increasing presence of independent firms. Large firms have been completing various mergers and acquisitions to increase their operational size, leading to high competition in the market.
Supply chain risk in the physical therapy services market is moderate, which has made it more difficult for medical providers to reliably source drugs and medical devices, especially from overseas suppliers. Fortunately, physical therapists do not have many recurring purchases because most critical inputs are capital investments, thus preventing higher supply chain risk and reducing the likelihood of service disruptions.
As a net importer in the physical therapy services market, US buyers' procurement strategies may be influenced by factors such as cost considerations and international competition and will need to carefully evaluate pricing options and potentially seek out more cost-effective solutions. Being a net importer can restrict buyer power and reduce their ability to dictate terms and conditions in procurement transactions, and will have less control over pricing, quality, and availability of the goods or services they need.
Supplier Information
Select Medical Holdings Corp
Select Medical Holdings Corp is a public company operating nationally in the healthcare and social assistance sector. The company's offerings include physical screening services and physical therapy services. Founded in 1996, the company is currently headquartered in MECHANICSBURG, Pennsylvania, United States... Subscribe to learn more
US Physical Therapy Inc.
US Physical Therapy Inc. is a public company operating internationally in the healthcare and social assistance sector. The company's offerings include physical therapy services. Founded in 2017, the company is currently headquartered in HOUSTON, Texas, United States of America with an estimated 6135 employees.... Subscribe to learn more
Adventist Healthcare, Inc.
Adventist Health System/West is a private company operating regionally in the healthcare & social assistance sector. The company's offerings include physical therapy services. Founded in 1980, the company is currently headquartered in Roseville, California, United States of America with an estimated employee... Subscribe to learn more
Agiliti Health, Inc.
Agiliti Health, Inc. is a private company operating nationally in the real estate & rental & leasing, healthcare & social assistance and other services (except public administration) sectors. The company's offerings include physical therapy services, medical & surgical equipment repair and medical equipment... Subscribe to learn more
Encompass Health Corporation
Encompass Health Corp. is an inpatient rehabilitation services provider operating hospitals in the US and Puerto Rico. It serves patients with physical or cognitive disabilities or injuries due to medical conditions, such as strokes, hip fractures, and various debilitating neurological disorders that are Subscribe to learn more
Ensign Group, Inc.
Ensign Group, Inc. is a public company operating nationally in the healthcare and social assistance sector. The company's offerings include physical therapy services. Founded in 1999, the company is currently headquartered in SAN JUAN CAPISTRANO, California, United States of America with an estimated 29900... Subscribe to learn more
Hca Healthcare, Inc.
HCA Healthcare, Inc. is a health care services company that operates hospitals and healthcare facilities across the US and England. Its portfolio includes general and acute care hospitals, psychiatric hospitals, rehabilitation hospitals, and freestanding surgery centers in Alaska, California, Colorado, Florida,... Subscribe to learn more
Kindred Healthcare, Inc.
Kindred Healthcare, Inc. is a private company operating internationally in the healthcare & social assistance sector. The company's offerings include physical therapy services. Founded in 1985, the company is currently headquartered in Louisville, Kentucky, United States of America with an estimated 10000... Subscribe to learn more
Lifepoint Health, Inc.
Lifepoint Health, Inc. is a private company operating nationally in the healthcare & social assistance sector. The company's offerings include physical therapy services. Founded in 1999, the company is currently headquartered in Brentwood, Tennessee, United States of America with an estimated 10000 employees.... Subscribe to learn more
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Procurement Management KPIs for the Physical Therapy Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Customer Acquisition Cost and Customer Satisfaction (CSAT). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Compliance and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Customer Acquisition Cost |
|
Total marketing costs Total sales cost Number of customers acquired |
Determining how much it costs to establish a customer relationship is essential in negotiation and price planning. Using customer acquisition cost can be used to determine the efficiency of customer acquisition process. |
| Customer Satisfaction (CSAT) |
|
Number of positive customer responses Number of customer responses |
Overall customer satisfaction with a vendor is indicative of how cooperative and sympathetic they are to customer needs. Positive customer satisfaction shows that the vendor cares for the success of the buyers in their physical therapy treatments. |
|
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Qualifications
How long have you been providing physical therapy services?
How far-reaching are your operations on a national scale? Do you mainly serve local regions?
Quality Control
Are you a member of the American Physical Therapy Association? What other groups or industry associations are you a part of?
How do you account for patient privacy? Do you require permission before disclosing any medical records to third parties?
Service Performance
What credentials or degrees do your therapists possess?
Do you follow evidence-based treatment guidelines? What sort of case studies or supplemental research do you evaluate to stay up to date with market trends?
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Physical Therapy Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should outline details of their organization, including the number of employees, locations and organizational structure.
Buyers should provide detailed information about the scope and purpose of this project.
Statement Of Need
Buyers should clearly state which types of physical therapy services they wish to procure (e.g., orthopedic, geriatric, neurological, cardiopulmonary or pediatric rehabilitation).
Buyers should specify what type of injury, condition or problem the physical therapy services should address.
Project Budget
If one exists, buyers should specify their budget for the desired physical therapy services as well as related products and services.
Buyers should inquire about hourly rates for the services.
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Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
